Tokyo, 19 September 2025 — Asian equity markets opened higher early Friday, riding the wave of optimism from record performances on U.S. and global stock indices. The Federal Reserve’s recent interest-rate cut has bolstered risk appetite, helping set the tone for regional gains.
Futures for Japan, Australia, and Hong Kong were all in the green, reflecting investor confidence after the S&P 500, Nasdaq-100, Dow Jones Industrial Average, and Russell 2000 all notched up simultaneous record closes — a feat not seen since November 2021. An MSCI index of global stocks similarly ended at a new high.
The rally in tech equities added fuel to the rally. Nvidia’s surprise US$5 billion investment into Intel helped send Intel shares soaring over 20%, lifting the broader semiconductor and tech sectors. Meanwhile, the U.S. dollar strengthened, particularly against yield-sensitive currencies like the Japanese yen, ahead of an upcoming rate decision by the Bank of Japan.
Economic signals reinforced the upbeat mood. U.S. jobless claims fell by the deepest margin in nearly four years, suggesting that the labour market remains resilient even amid concerns about inflation. This bolsters the case for more rate cuts without tipping the economy into recession.
However, some market watchers cautioned that valuations may be stretched in certain areas. Megacap tech stocks have driven a large portion of returns this year; critics warn that if momentum in those names cools, broader market gains could falter. Analysts at UBS and other institutions remain cautiously optimistic, assuming the U.S. economy holds up and inflation remains under control.
On the monetary policy front, attention will shift to Japan, where economists expect the BOJ to hold its target interest rate at 0.5% for now. Signals from Tokyo will be closely watched for indications of future easing.
In commodities, gold and U.S. crude oil were mostly flat to slightly lower, while oil prices also reacted to geopolitical developments. Elsewhere in corporate news: FedEx affirmed its full-year profit guidance, Hyundai adjusted revenue expectations while trimming profit forecasts amid tariff pressures, and India’s markets regulator cleared the Adani Group of some past allegations.
